Correlation Between Bank of Communications and Jilin Jlu
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By analyzing existing cross correlation between Bank of Communications and Jilin Jlu Communication, you can compare the effects of market volatilities on Bank of Communications and Jilin Jlu and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Bank of Communications with a short position of Jilin Jlu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Communications and Jilin Jlu.
Diversification Opportunities for Bank of Communications and Jilin Jlu
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bank and Jilin is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Communications and Jilin Jlu Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jilin Jlu Communication and Bank of Communications is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Bank of Communications are associated (or correlated) with Jilin Jlu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jilin Jlu Communication has no effect on the direction of Bank of Communications i.e., Bank of Communications and Jilin Jlu go up and down completely randomly.
Pair Corralation between Bank of Communications and Jilin Jlu
Assuming the 90 days trading horizon Bank of Communications is expected to under-perform the Jilin Jlu. But the stock apears to be less risky and, when comparing its historical volatility, Bank of Communications is 2.14 times less risky than Jilin Jlu. The stock trades about -0.03 of its potential returns per unit of risk. The Jilin Jlu Communication is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 972.00 in Jilin Jlu Communication on December 7, 2024 and sell it today you would earn a total of 10.00 from holding Jilin Jlu Communication or generate 1.03% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Bank of Communications vs. Jilin Jlu Communication
Performance |
Timeline |
Bank of Communications |
Jilin Jlu Communication |
Bank of Communications and Jilin Jlu Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bank of Communications and Jilin Jlu
The main advantage of trading using opposite Bank of Communications and Jilin Jlu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Communications position performs unexpectedly, Jilin Jlu can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Jilin Jlu will offset losses from the drop in Jilin Jlu's long position.Bank of Communications vs. Huawen Media Investment | Bank of Communications vs. Hubei Geoway Investment | Bank of Communications vs. TVZone Media Co | Bank of Communications vs. Beijing Mainstreets Investment |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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